Edenred SE — Interim / Quarterly Report 2011

Oct 17, 2011

Sustained Growth in the Third Quarter

Revenue for the quarter up 11.3%, lifting growth for the first nine months to 10.3%

¹ Like-for-like (based on a comparable scope of consolidation and at constant exchange rates)

ISSUE VOLUME FOR THE FIRST NINE MONTHS UP 9.7% LIKE-FOR-LIKE

Issue volume for the first nine months of 2011 amounted to €10,844 million, up 9.7% like-for-like. The reported increase was 10.2%, reflecting the 0.8% positive effect of changes in consolidation scope and the 0.3% negative currency effect for the period.

(in € millions)	Q1 2011	Q2 2011	Q3 2011	9 months 2011
Europe	1,807	1,848	1,624	5,280
Latin America	1,628	1,742	1,836	5,206
Rest of the world	119	120	120	359
TOTAL	3,554	3,710	3,580	10,844

Issue volume by region

Issue volume growth by region

Like-for-like issue volume growth	Q1 2011	Q2 2011	Q3 2011	9 months 2011
Europe	-0.3%	+1.4%	-1.3%	0.0%
Latin America	+20.5%	+21.5%	+19.4%	+20.5%
Rest of the world	+23.1%	+17.1%	+23.8%	+21.2%
TOTAL	+9.0%	+10.9%	+9.1%	+9.7%

Like-for-like issue volume growth remained strong in the third quarter, reflecting:

• A slight 0.8% increase in Europe, after taking into account the loss of the Consip contract in Italy (which represented issued volume of €34 million in third-quarter 2010), in an environment shaped by stable number of people in work.
• Sharp 19.4% growth in Latin America, despite the high third-quarter 2010 comparatives, sustained by job creation, improved penetration rates and increased face values.

OPERATING REVENUE FOR THE FIRST NINE MONTHS UP 9.6% LIKE-FOR-LIKE

Operating revenue for the first nine months of 2011 totaled €678 million, representing a like-for-like gain of 9.6%. On a reported basis, the increase was 7.8% after taking into account:

• The 1.8% negative effect of changes in consolidation scope, corresponding to the divestment during the period of non-strategic businesses.
• Compensating positive and negative currency effects, including:
• o The 0.7% positive effect of the Brazilian real's appreciation over the period.
• o A negative 0.4% due to the Venezuelan bolivar.

The 10.3% like-for-like increase in operating revenue during the third quarter was in line with the growth in issue volume, attesting to the stabilization of client fee rates.

Like-for-like operating revenue growth	Q1 2011	Q2 2011	Q3 2011	9 months 2011
Europe	-1.1%	+5.3%	+2.2%	+2.0%
Latin America	+17.4%	+19.5%	+18.8%	+18.6%
Rest of the world	+10.0%	+9.7%	+14.4%	+11.4%
TOTAL	+6.6%	+11.7%	+10.3%	+9.6%

Operating revenue for the first nine months in Europe: €331 million

In Europe, operating revenue grew 2.0% like-for-like over the first nine months of 2011, led by a 2.2% gain in the third quarter.

In France, operating revenue was stable on a like-for-like basis over the first nine months. The third quarter saw a modest 0.7% like-for-like increase versus a 0.3% decline in the first half, reflecting a good performance by Ticket Restaurant® that was partly offset by lower BtoC gift voucher revenue.

Belgium enjoyed a 5.2% like-for-like rise in operating revenue in the third quarter, on the back of 4.3% growth in the first half, led by the robust performance of Ticket Restaurant® business.

In the United Kingdom, demand for the Childcare Voucher solution remained strong, helping to lift operating revenue by 8.8% like-for-like in the third quarter in the wake of 7.4% growth in the first half.

In Italy, operating revenue rose 2.2% like-for-like in the third quarter versus 4.3% in the first half.

In Romania, the decline in operating revenue slowed to just 2.2% like-for-like in the third quarter from a drop of 27.0% in the first half, confirming the gradual stabilization of issue volumes and client fee rates.

Operating revenue for the first nine months in Latin America: €301 million

In Latin America, operating revenue increased by 18.6% like-for-like in the first nine months of 2011. Third quarter growth was 18.8% despite higher prior period comparatives than in the first half. This favorable trend was attributable to vibrant local economies and solid sales performances.

In Brazil, client wins in a buoyant economic environment helped to drive 18.7% like-for-like growth in operating revenue in the third quarter. All Edenred solutions contributed to this performance, with meal and food voucher revenue advancing 18.3% during the quarter and Ticket Car revenue up 18.8%.

In Hispanic Latin America, operating revenue expanded 19.3% like-for-like in the third quarter. In this market too, all products performed well. Operating revenue from meal and food vouchers was up by a strong 21.1% during the quarter, while Ticket Car revenue was 19.9% higher and represented over 20% of total revenue in the region.

FINANCIAL REVENUE FOR THE FIRST NINE MONTHS UP 17.9% LIKE-FOR-LIKE

Financial revenue grew at a brisk pace in the third quarter, rising 21.9% like-for-like. This performance lifted financial revenue for the first nine months by 17.9%.

Latin America continued to benefit from rising interest rates and a growing float² , leading to 48.6% like-for-like growth in financial revenue during the third quarter, on the back of a 40.0% increase in the first half.

In Europe, the ongoing favorable interest rate comparatives helped to drive 7.3% like-for-like growth in financial revenue in the third quarter, compared with 4.3% in the first half.

CONCLUSION

Issue volume for the first nine months of 2011 totaled €10,844 million, a like-for-like increase of 9.7% that reflected vibrant local economies and robust marketing performances in Latin America (up 20.5%) and soft growth in Europe (up 2.3% excluding the loss of the Consip contract in Italy) in an environment shaped by stable number of people in work.

These favorable business trends should continue in the fourth quarter, although prior period comparatives will be unfavorable in Latin America (due to last year's very strong Christmas period sales) and the BtoC gift voucher weight will be higher in France.

On this basis, the Group confirms its 2011 target of 6% to 14% like-for-like issue volume growth.

Total revenue for the nine-month period came to €746 million, up by a robust 10.3% like-for-like. Operating revenue grew at the same pace as issue volume, reflecting stabilized client fee rates, while higher interest rates drove a sharp rise in financial revenue.

The fourth quarter should see a continuation of this underlying trend, although prior period financial revenue comparatives in Latin America will be higher.

The Group therefore confirms its 2011 target of reporting EBIT of between €340 million and €360 million.

² The float corresponds to the business's negative working capital requirement.

QUARTERLY INFORMATION

Significant transactions and events of the period

On August 16, 2011, Edenred sold its Australian subsidiary Davidson Trahaire, a human resources consultancy specialized in employee assistance programs and other corporate psychology services. The business, which does not generate any issue volume, contributed €18 million to consolidated revenue in 2010.

The disposal was carried out as part of the strategic review of Edenred's non-core businesses, and followed on from the Q2 2011 sale of the Group's 45% interest in US-based WorkPlace Benefits, which is also specialized in employee assistance programs, and of its corporate concierge and personal assistance operations in France.

INVESTOR CALENDAR

Investor Day, November 29, 2011 in London

Fourth quarter revenue announcement on January 17, 2012

Edenred, which invented the Ticket Restaurant® meal voucher and is the world leader in prepaid corporate services, designs and delivers solutions that make employees' lives easier and improve the efficiency of organizations.

—

By ensuring that allocated funds are used as intended, these solutions enable companies to more effectively manage their:

Employee benefits (Ticket Restaurant® , Ticket Alimentación, Ticket CESU, Childcare Vouchers, etc.).

Expense management process (Ticket Car, Ticket Cleanway, etc.)

Incentive and rewards programs (Ticket Compliments, Ticket Kadéos, etc.).

The Group also supports public institutions in managing their social programs.

Listed on the NYSE Euronext Paris stock exchange, Edenred operates in 40 countries, with 6,000 employees, nearly 530,000 companies and public sector clients, 1.2 million affiliated merchants and 34.5 million beneficiaries. In 2010, total issue volume amounted to €13.9 billion, of which 55% was generated in emerging markets.

Ticket Restaurant® and all other tradenames of Edenred products and services are registered trademarks of Edenred SA.

Contacts

Eliane Rouyer-Chevalier, Executive Vice President Communications – Phone: +33 (0)1 74 31 86 26- eliane.rouyer@edenred.com

Media relations

Anne-Sophie Sibout, Media Relations Director - Phone: +33 (0)1 74 31 86 11- anne-sophie.sibout@edenred.com Anaïs Lannes, Press Officer - Phone : +33 (0)1 74 31 86 27 – anais.lannes@edenred.com

Investor relations

Solène Zammito, Financial Communications Director – Phone : + 33 (0)1 74 31 86 18 - solene.zammito@edenred.com Virginie Monier, Investor Relations - Phone: + 33 (0)1 74 31 86 16 - virginie.monier@edenred.com

Appendices

Issue Volume

	Q1		Q2		H1		Q3		September end (YTD)
In € millions	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011
France Rest of Europe Latin America Rest of the world	641 1,135 1,301 97	659 1,148 1,628 119	607 1,183 1,536 115	617 1,232 1,742 120	1,248 2,318 2,837 212	1,276 2,380 3,370 239	518 1,107 1,488 114	512 1,112 1,836 120	1,766 3,425 4,325 327	1,788 3,492 5,206 359
TOTAL ISSUE VOLUME	3,174	3,554	3,441	3,710	6,615	7,264	3,227	3,580	9,843	10,844

	Q1		Q2		H1		Q3		September end (YTD)
In %	Change	Change	Change	Change	Change	Change	Change	Change	Change	Change
	reported	L/L*	reported	L/L*	reported	L/L*	reported	L/L*	reported	L/L*
France	2.9%	2.9%	1.7%	1.7%	2.3%	2.3%	-1.3%	-1.3%	1.2%	1.2%
Rest of Europe	1.1%	-2.0%	4.1%	1.3%	2.7%	-0.3%	0.4%	-1.3%	1.9%	-0.7%
Latin America	25.1%	20.5%	13.4%	21.5%	18.8%	21.0%	23.4%	19.4%	20.4%	20.5%
Rest of the world	22.1%	23.1%	3.9%	17.1%	12.2%	19.8%	5.6%	23.8%	9.9%	21.2%
TOTAL ISSUE VOLUME	11.9%	9.0%	7.8%	10.9%	9.8%	10.0%	10.9%	9.1%	10.2%	9.7%

	Q1		Q2		H1		Q3		September end (YTD)
In € millions	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011
France Rest of Europe Latin America Rest of the world	36 79 78 15	36 81 94 17	33 73 91 17	34 78 100 16	69 152 169 32	70 159 194 33	32 70 89 16	31 71 107 12	101 222 258 48	101 230 301 46
OPERATING REVENUE	208	227	214	229	422	456	207	221	629	678

Operating Revenue

	Q1		Q2		H1			Q3	September end (YTD)
In %	Change	Change	Change	Change	Change	Change	Change	Change	Change	Change
	reported	L/L*	reported	L/L*	reported	L/L*	reported	L/L*	reported	L/L*
France	1.7%	-1.1%	0.0%	0.6%	0.7%	-0.3%	-2.5%	0.7%	-0.3%	0.0%
Rest of Europe	1.6%	-1.1%	7.9%	7.5%	4.6%	3.0%	2.3%	2.8%	3.9%	3.0%
Latin America	19.8%	17.4%	10.4%	19.5%	14.7%	18.5%	20.0%	18.8%	16.6%	18.6%
Rest of the world	15.2%	10.0%	-3.5%	9.7%	5.2%	9.8%	-24.0%	14.4%	-4.6%	11.4%
OPERATING REVENUE	9.4%	6.6%	6.8%	11.7%	8.1%	9.2%	7.2%	10.3%	7.8%	9.6%

	Q1		Q2		H1		Q3		September end (YTD)
In € millions	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011
France Rest of Europe Latin America Rest of the world	5 8 6 -	5 7 9 1	5 8 6 1	5 8 9 1	10 16 12 1	10 16 17 1	5 8 6 1	5 8 9 1	14 23 19 2	15 24 27 2
Financial Revenue	19	22	20	23	39	44	19	24	58	68

Financial Revenue

		Q1	Q2		H1		Q3		September end (YTD)
In %	Change reported	Change L/L*	Change reported	Change L/L*	Change reported	Change L/L*	Change reported	Change L/L*	Change reported	Change L/L*
France Rest of Europe Latin America Rest of the world	4.2% -4.9% 47.3% 10.2%	4.3% -0.9% 38.8% 10.0%	12.0% 3.0% 34.5% 5.1%	12.0% 4.9% 41.0% 17.5%	8.0% -1.0% 40.6% 7.5%	8.0% 2.0% 40.0% 14.0%	13.6% 11.5% 50.7% 18.9%	13.6% 3.6% 48.6% 35.8%	9.8% 3.1% 44.0% 7.4%	9.8% 2.5% 42.8% 14.1%
Financial Revenue	13.9%	13.0%	15.7%	19.0%	14.8%	16.0%	25.0%	21.9%	18.2%	17.9%

Total Revenue

	Q1		Q2 H1 Q3			September end (YTD)
In € millions	2010	2011	2010	2011	2010	2011	2010	2011	2010	2011
France Rest of Europe Latin America Rest of the world	41 87 84 15	41 88 102 18	38 81 97 18	39 87 109 17	79 168 181 33	80 175 211 35	36 77 96 17	36 80 116 13	115 245 277 50	116 254 328 48
Total Revenue	227	249	234	251	461	501	226	245	687	746

	Q1		Q2		H1 Q3			September end (YTD)
In %	Change	Change	Change	Change	Change	Change	Change	Change	Change	Change
	reported	L/L*	reported	L/L*	reported	L/L*	reported	L/L*	reported	L/L*
France	2.0%	-0.4%	1.0%	1.9%	1.6%	0.7%	-0.5%	2.3%	0.9%	1.2%
Rest of Europe	1.0%	-1.1%	7.5%	7.3%	4.1%	2.9%	3.2%	2.9%	3.8%	2.9%
Latin America	21.7%	18.9%	12.0%	20.9%	16.5%	20.0%	22.0%	20.8%	18.4%	20.3%
Rest of the world	15.0%	10.0%	-3.2%	10.0%	5.3%	10.0%	-21.9%	15.4%	-3.9%	11.8%
Total Revenue	9.8%	7.2%	7.5%	12.3%	8.6%	9.8%	8.7%	11.3%	8.6%	10.3%